Preferred Bank (NASDAQ:PFBC) Shares Down 6.2% – Here’s Why

Preferred Bank (NASDAQ:PFBC) shares dropped 6.2% on Friday . The stock traded as low as $87.08 and last traded at $86.5340. Approximately 42,509 shares traded hands during trading, a decline of 51% from the average daily volume of 87,516 shares. The stock had previously closed at $92.21.

Preferred Bank News Roundup

Here are the key news stories impacting Preferred Bank this week:

• Positive Sentiment: Q4 beat on the headline numbers — PFBC reported $2.79 EPS vs. $2.78 expected and revenue of $78.07M above estimates, showing income strength and year-over-year improvement. Preferred Bank (PFBC) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Loan growth was highlighted on the call — management pointed to expanding loan balances as a core driver of revenue recovery potential. Preferred Bank (PFBC) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Noninterest items helped the quarter — the sale of two large OREO properties produced a ~$3.6M gain, cushioning results. Preferred Bank Reports Fourth Quarter Results
• Neutral Sentiment: Dividend appeal flagged by analysts — coverage notes PFBC’s dividend yield and payout make it attractive to income investors, though that depends on sustaining earnings. Why Preferred Bank (PFBC) is a Great Dividend Stock Right Now
• Neutral Sentiment: Full earnings call transcripts and deep dives are available for detail on assumptions, reserves and guidance — useful for modeling next quarters. Preferred Bank (PFBC) Q4 2025 Earnings Transcript
• Negative Sentiment: Margin pressure is a key concern — management cited a decline in net interest income versus the prior quarter as market rates fell, pressuring NII and NIM. Preferred Bank (PFBC) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Higher costs and credit reserve build — the bank recorded an uptick in the provision for credit losses and noted rising deposit costs, which raise near-term expense and credit-risk uncertainty. PFBC Q4 deep dive: Deposit costs, credit quality, and loan growth shape outlook
• Negative Sentiment: Market reaction: multiple outlets report shares falling as investors weigh the beat against margin and reserve headwinds and a cautious management tone. Why Preferred Bank (PFBC) shares are falling today

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of Preferred Bank in a research note on Monday, December 29th. Piper Sandler upped their price objective on Preferred Bank from $112.00 to $119.00 and gave the company an “overweight” rating in a research note on Wednesday, October 22nd. Zacks Research downgraded Preferred Bank from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 26th. Finally, DA Davidson lowered their target price on Preferred Bank from $108.00 to $104.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 22nd. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $104.67.

Preferred Bank Trading Down 7.7%

The firm’s 50 day moving average is $96.14 and its 200 day moving average is $93.44. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.07 and a quick ratio of 1.07. The company has a market cap of $1.23 billion, a PE ratio of 8.65 and a beta of 0.66.

Preferred Bank (NASDAQ:PFBC) last announced its quarterly earnings results on Thursday, January 22nd. The bank reported $2.79 EPS for the quarter, beating the consensus estimate of $2.78 by $0.01. The firm had revenue of $78.07 million during the quarter, compared to the consensus estimate of $74.54 million. Preferred Bank had a net margin of 25.67% and a return on equity of 16.91%. On average, equities analysts anticipate that Preferred Bank will post 9.81 earnings per share for the current year.

Preferred Bank Announces Dividend

The business also recently announced an annual dividend, which was paid on Tuesday, January 20th. Investors of record on Tuesday, January 6th were paid a $3.20 dividend. This represents a yield of 336.0%. The ex-dividend date of this dividend was Tuesday, January 6th. Preferred Bank’s dividend payout ratio (DPR) is currently 32.52%.

Hedge Funds Weigh In On Preferred Bank

Large investors have recently modified their holdings of the company. Amalgamated Bank boosted its stake in shares of Preferred Bank by 3.5% in the 3rd quarter. Amalgamated Bank now owns 3,452 shares of the bank’s stock valued at $312,000 after purchasing an additional 116 shares in the last quarter. Copeland Capital Management LLC grew its stake in shares of Preferred Bank by 16.2% during the second quarter. Copeland Capital Management LLC now owns 845 shares of the bank’s stock valued at $73,000 after buying an additional 118 shares during the last quarter. SummerHaven Investment Management LLC increased its holdings in shares of Preferred Bank by 1.6% in the second quarter. SummerHaven Investment Management LLC now owns 10,582 shares of the bank’s stock worth $916,000 after buying an additional 170 shares during the period. Envestnet Asset Management Inc. lifted its stake in shares of Preferred Bank by 1.4% in the 2nd quarter. Envestnet Asset Management Inc. now owns 13,581 shares of the bank’s stock valued at $1,175,000 after acquiring an additional 187 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Preferred Bank by 2.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,266 shares of the bank’s stock valued at $608,000 after acquiring an additional 202 shares during the last quarter. 72.77% of the stock is owned by hedge funds and other institutional investors.

About Preferred Bank

Preferred Bank (NASDAQ: PFBC) is a California-chartered commercial bank headquartered in Los Angeles. The institution offers a full range of banking products and services to businesses and individuals, with a particular emphasis on commercial real estate lending, business banking, treasury management and deposit accounts. Preferred Bank operates through branch offices across Southern California and national loan production offices in major U.S. markets.

The bank’s core lending portfolio focuses on commercial real estate acquisition, development and investment properties.